Balaji Srinivasan Says FTX Is a Preview of State Failure, USD Bank Accounts Could Be Frozen or Inflated to Worthlessness

Angel capitalist Balaji Srinivasan says the illness of crypto speech FTX should beryllium treated arsenic “a preview of authorities failure.” He warned that 1 time U.S. dollar slope accounts “may beryllium frozen oregon inflated to worthlessness,” emphasizing that the authorities “will amusement nary involvement successful prosecuting.” Srinivasan cautioned: “That satellite is coming and we request alternatives.”

Balaji Srinivasan connected FTX, State Failure, and U.S. Dollars Becoming Worthless

Angel capitalist Balaji Srinivasan commented connected the illness of crypto speech FTX successful a bid of tweets Saturday. Formerly the CTO of crypto speech Coinbase and a wide spouse astatine task superior steadfast Andreessen Horowitz (a16z), Srinivasan is besides the writer of The Network State, a WSJ bestseller.

“Treat FTX arsenic a preview of authorities failure,” helium wrote, adding:

One day, your USD slope relationship equilibrium whitethorn beryllium frozen oregon inflated to worthlessness. The authorities volition amusement nary involvement successful prosecuting — they’re the ones who ordered it successful the archetypal place. That satellite is coming and we request alternatives.

“It’s each conscionable a formal rehearsal for the eventual rug propulsion — erstwhile the authorities prints trillions, monetizes the debt, and ends the fiat century,” the angel capitalist explained successful different tweet. “Our abstraction volition beryllium prepared. We cognize what that looks like. And our trust-minimizing systems volition beryllium beingness rafts for the world.”

Many radical connected Twitter agreed with Srinivasan, stating that bitcoin and decentralization are the answer.

However, immoderate disagreed, telling the entrepreneur that FTX is simply a fraud and a Ponzi scheme. “It’s not a preview of authorities failure. It has thing to bash with that. It’s simply fraud,” 1 wrote. “How tin you equate a 32-year-old con antheral who had nary controls, structure, systems, oregon committee to the U.S. government?” different questioned. A 3rd opined: “Comparing regulated banking manufacture to unregulated crypto speech is misleading.”

Srinivasan besides commented connected bitcoin arsenic a hedge against ostentation successful different tweet connected Saturday. The angel capitalist detailed:

It’s a hedge against hyperinflation, monetary debasement, slope freezes, and wealthiness seizure. It’s already proven itself successful that role, successful places similar Venezuela, Lebanon, Nigeria. For ‘standard’ ostentation it whitethorn yet person a gold-like role, but that takes decades to show.

Do you hold with Balaji Srinivasan astir FTX and bitcoin? Let america cognize successful the comments conception below.

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